CNBC.com’s MacKenzie Sigalos brings you the day’s top business news headlines. On today’s show, Kate Rooney breaks down the outgoing GameStop CEO’s golden parachute, and Kate Rogers explains how wage inflation is leading to higher prices at chain restaurants.
GameStop sales rise 25% as the company chases e-commerce growth, embarks on a turnaround
GameStop sales rose 25% in the fiscal first-quarter, as the video game retailer embarks on a turnaround strategy partially fueled by a Reddit-inspired stock rally. The company also named former Amazon executive Matt Furlong as its new CEO.
Shares fell more than 13% in extended trading on Wednesday, after the company declined to provide an outlook for the year and said it may sell as much as 5 million shares.
Consumer prices jump 5% in May, fastest pace since the summer of 2008
Consumer prices for May accelerated at their fastest pace in nearly 13 years as inflation pressures continued to build in the U.S. economy, the Labor Department reported Thursday.
The consumer price index, which represents a basket including food, energy, groceries, housing costs and sales across a spectrum of goods, rose 5% from a year earlier. Economists surveyed by Dow Jones had been expecting a gain of 4.7%.
The reading represented the biggest CPI gain since the 5.3% increase in August 2008, just before the financial crisis sent the U.S. spiraling into the worst recession since the Great Depression.
Homeowners got $2 trillion richer during the first three months of the year
Homeowners are getting richer and richer as prices keep soaring – and the numbers are staggering.
Those with mortgages — about 62% of all properties — saw their equity jump by 20% in the first quarter from a year earlier, according to CoreLogic. This represents a collective cash gain of close to $2 trillion. Per borrower, the average gain was $33,400.
The massive gain is thanks to soaring home prices, which CoreLogic said were up over 11% in March, the end of the quarter, from a year earlier. That’s the sharpest gain since 2006. Prices rose an even stronger 13% in April.